Denver Flood insurance
Most, if not all, Denver homeowner’s insurance policies do not cover floods. If you live in certain areas, your mortgage company may require flood insurance. You do not have to live close to a river to be exposed to a possible flood. If you do live in a special flood risk area, you need to have flood insurance; especially if you need help from the federal government.
Some additional statistics for consideration: (From Propertycasualty360.com)
Due to climate change and increased coastal urbanization, flood damage is expected to double every decade for the rest of the century. [National Academy of Sciences]
Of the 10 million properties in the U.S. at higher risk of flooding, slightly more than half are insured through the National Flood Insurance Program (NFIP). [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013)]
There is a 26% chance that these at risk properties will experience a flood loss during their 30-year mortgage, with an average cost of more than $35,000 [Risk Assessment, Mapping and Planning Partners (2013) Flood Hazard Demographics and NFIP Policy/Claims Analysis (2013)]
There is a 1% chance of a home burning in the same 30-year term, costing an average of $18,000, and yet only 5% of Americans go without homeowners insurance. [NFIP]
Federal Flood Insurance
The law requires coverage in an amount equal to the outstanding principal balance of the loan, the value of your home, or the maximum limit of coverage under the program; whichever is less.
The only way to purchase flood insurance is through the federal government, (FEMA).
Flood Insurance Myths
- “We have had a flood, so I cannot get coverage.” It doesn’t matter how many times your home has been flooded. You are still eligible for coverage if your community participates in the National Flood Insurance Program.
- “I do not live near water so I do not need the coverage.” Flood waters can travel hundreds of miles. Check with our office for information on how we can help you determine your risk.
- “I live in a flood zone, so I cannot get coverage.” You can get federal flood insurance no matter where you live if your community participates in the National Flood Insurance Program.
- “Flood insurance is only for homeowners.” Flood insurance is available for renters, condo owners, businesses, and manufactured homes.
Here at DCInsurers – Mountain, we are dedicated to making sure that you have the proper insurance coverage right when you need it. Our experienced brokers know Denver well, which means we also know which options you need when it comes to choosing your personal insurance.